Israeli authorities link crypto & other Stablecoins to Hamas, ISIS & Hezbollah: Report
Israeli authorities assert that militant groups including Hamas, ISIS and Hezbollah are using stablecoins to fund their activities. This has intensified the debate over the ethical use of cryptocurrencies.
cryptocurrency
Highlights
- Armed groups use cryptocurrencies, with stablecoins replacing Bitcoin for cross-border transactions
- Delhi Police in India reported a theft of four crore sent to Hamas
- Tether freezes $873k linked to Israeli-Hamas and Ukraine-Russia conflicts
The ongoing conflict with Hamas has led Israeli authorities to claim that stablecoins are being utilised by numerous terror and militant groups, including Hamas, ISIS, and Hezbollah, to access funding and launder money. Reports suggest that cryptocurrencies have played a role in funding Hamas's attacks on Israel.
This raises ethical questions about the use of cryptocurrencies, which has been a contentious issue between regulators and Web3 companies like Binance, Tornado Cash, and Tron. The Israeli National Bureau for Counter-Terror Financing has reportedly alleged that crypto is being heavily used to fund terror activities.
The wallet that transferred the most amount was TB2iP6zPR3Z7VAAq8kRnZgsoPP6qa9kjgH, which is linked to Hamas and operates on the Tron blockchain. This wallet allegedly transacted with Binance wallets, which are known for their increased cooperation with law enforcement against terror financing.
Terror groups have reportedly switched from Bitcoin to stablecoins for money laundering via DEXs. The most used cryptocurrency was USDT, with significant amounts of USDC, TUSD, and USDD also involved. Reports suggest that nearly $130 million was transferred to Hamas recently. It is also claimed that these transfers are linked to Amir Capital, an alleged Russian ponzi.
USD stablecoin flows into Tron accounts that the Israeli National Bureau for Counter Terror Financing (#NBCTF) has publicly claimed are controlled by #Hamas, #Hezbollah, #ISIS, or other #terrorists are significantly higher than we expected, totaling in the billion dollar range.… pic.twitter.com/PmN9CBc4w4 — ChainArgos (@ChainArgos) October 15, 2023
8/ While we're not sure whether @chainalysis is responding to this thread with their recent blog post or not we wanted to say for the record that we agree with their contention that a billion dollars in flows does not mean a billion dollars for terrorism (and we said as much when… pic.twitter.com/GSo8NMi4ME
— ChainArgos (@ChainArgos) October 18, 2023
United Nation report
The UN reports that nearly 20 percent of global terror financing is done through cryptocurrencies. In June 2023, Israel seized crypto assets worth millions of dollars transferred to Hezbollah. Recently, Delhi Police in India reported that ₹4 crore was stolen and sent to Hamas. This claim was backed by Mossad, Israel's external intelligence agency. Reports suggest that since 2021, Hamas and two other militant groups received almost $41 million through cryptocurrencies.
Tether takes action
On October 16, 2023, Tether froze about $873k worth of crypto linked to the Israeli-Hamas conflict and the Ukraine-Russia war. Tether's CEO Paolo Ardoino stated that crypto transactions are traceable and that Tether is collaborating with global law enforcement agencies to track illicit fund movements.
Illegal use of cryptocurrencies
The use of cryptocurrencies for potentially illegal activities has been a contentious issue since their rise in popularity in the mid-2010s. The recent attacks on Israel, believed to be partially funded by crypto, could lead to stricter regulations, impacting the freedom of Web3 users.
Several cases have been lodged against Binance, Tornado Cash, Tron Foundation, and other crypto service providers for insufficient anti-money laundering measures.
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